Automatic stabilizers are government programs that:
a. exaggerate the ups and downs in aggregate demand without legislative action.
b. bring expenditures and revenues automatically into balance without legislative action.
c. shift the budget toward a deficit when the economy slows but shift it toward a surplus during an expansion.
d. increase tax collections automatically during a recession.
c
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A cartel is a group of firms which agree to
A) behave competitively. B) raise the price of their product. C) lower the price of their product. D) increase the amount they produce.
Along an upward-sloping labor supply curve, as the wage rate increases, the opportunity cost of leisure ________, causing individuals to supply a ________ quantity of labor
A) decreases; greater B) increases; greater C) remains constant, constant D) increases; lower
According to the liquidity premium theory of the term structure
A) because buyers of bonds may prefer bonds of one maturity over another, interest rates on bonds of different maturities do not move together over time. B) the interest rate on long-term bonds will equal an average of short-term interest rates that people expect to occur over the life of the long-term bonds plus a term premium. C) because of the positive term premium, the yield curve will not be observed to be downward sloping. D) the interest rate for each maturity bond is determined by supply and demand for that maturity bond.
What do diseconomies of cities include?
(a) Pollution (b) Crime (c) Congestion (d) All of the above